The nuclear energy landscape is experiencing a remarkable transformation. After years of stagnation following the 2011 Fukushima disaster, global sentiment has shifted dramatically in favor of nuclear power as countries seek reliable, carbon-free energy sources. This renewed interest is creating compelling opportunities for investors with a long-term horizon.
The catalyst for this revival is clear: numerous nations have signed the Declaration to Triple Nuclear Capacity, and the International Atomic Energy Agency forecasts that nuclear production capacity could surge from 372 gigawatt-electric (GWe) in 2023 to 950 GWe by 2050. The Trump administration’s push to fast-track reactor deployment in the U.S. adds further momentum to this global trend.
For investors looking to capitalize on this nuclear renaissance, here are three stocks positioned to benefit from the industry’s resurgence.
Constellation Energy (CEG)
As America’s largest producer of carbon-free electricity with an emphasis on nuclear power, Constellation Energy stands at the forefront of the nuclear revival. The company’s fleet of nuclear plants operates at near-full efficiency most of the time, providing the baseline reliability that intermittent renewable sources like wind and solar cannot match on their own.
What makes Constellation particularly compelling is its emerging role in powering the AI revolution. The exploding energy demands from data centers have created a perfect opportunity for nuclear operators. Last year, Microsoft entered a groundbreaking power purchase agreement with Constellation, committing to buy nuclear energy to power its data centers. As part of this deal, Constellation plans to restart the Three Mile Island Unit 1 reactor – a powerful symbol of nuclear energy’s rehabilitation.
This Microsoft partnership likely represents just the beginning. As more technology companies seek reliable, carbon-free energy for their power-hungry operations, Constellation’s extensive nuclear footprint positions it ideally to meet this surging demand. While the stock isn’t cheap at current levels, trading around $271, the company’s unique positioning at the intersection of two powerful trends – nuclear renaissance and AI infrastructure growth – creates a compelling long-term investment case.
Cameco (CCJ)
For investors seeking exposure to the nuclear fuel supply chain, Canadian uranium giant Cameco offers a compelling opportunity. As one of the world’s largest uranium producers, Cameco controls high-quality mining operations primarily in Canada, including the Cigar Lake and McArthur River mines.
The company’s involvement spans the nuclear fuel cycle from mining to conversion and enrichment, providing comprehensive exposure to the industry’s growth. What separates Cameco from more speculative uranium plays is its established production capacity and long-term contracts with utility companies, providing revenue visibility through 2029 at an average of 28 million pounds of uranium annually.
Cameco’s strategic investments further strengthen its position. The company holds stakes in both Westinghouse, a leading nuclear technology provider, and Kazatomprom, which operates in uranium-rich Kazakhstan. Additionally, Cameco maintains significant undeveloped uranium deposits in Saskatchewan and Australia, providing expansion capacity as global demand increases.
Currently trading around $51 per share, Cameco offers investors direct exposure to the increasing uranium prices that typically accompany nuclear energy expansion. While uranium prices can be volatile, the company’s established contracts provide a measure of stability that pure exploration companies cannot match.
NuScale Power (SMR)
For investors willing to embrace higher risk for potentially greater rewards, NuScale Power represents an innovative play on the future of nuclear energy. The company specializes in small modular reactors (SMRs) – compact, factory-built units that can be transported to sites as needed and scaled according to power demands.
This modular approach addresses many traditional objections to nuclear energy: SMRs require less upfront capital, can be deployed more quickly, and offer enhanced safety features. NuScale’s first-mover advantage is significant – its 50 MWe (megawatt electric) design is the first SMR approved by the U.S. Nuclear Regulatory Commission, and the company is upgrading to a more cost-effective 77 MWe design expected to receive approval this year.
While larger nuclear players offer more immediate exposure to the industry’s growth, NuScale represents a bet on nuclear energy’s next evolution. The company is developing an SMR power station in Romania targeted for 2029 completion, but full-scale commercial deployment will take time. Trading around $17.50 per share with a $2 billion market cap, NuScale is best suited for patient investors willing to hold through development cycles.
For those concerned about SMR adoption, it’s worth noting that these smaller reactors are particularly well-suited for applications traditional nuclear plants can’t address, such as powering remote locations, industrial facilities, or smaller grids. This unique positioning could create substantial growth as the technology matures.
Bottom Line
The nuclear energy sector is experiencing a policy-driven renaissance unlike anything seen in decades. Global commitments to triple nuclear capacity, coupled with growing recognition of nuclear’s role in reliable carbon reduction, are creating tailwinds for the entire industry.
Constellation Energy offers exposure to existing nuclear infrastructure with emerging AI-powered demand growth. Cameco provides a more direct play on uranium supply fundamentals with the stability of established operations. NuScale Power represents a higher-risk, higher-reward bet on next-generation nuclear technology.
For investors with long-term horizons seeking exposure to this revitalized sector, a strategic position in one or more of these companies offers a way to participate in nuclear energy’s second act while diversifying across different segments of the industry value chain.
